One f the advantages of global/integrated markets (as opposed to segmented markets) is that a corporation's securities appeal to international portfolio investors, which facilitates international portfolio diversification. However, there are serious problems to potential diversification benefits when markets are highly interdependent in a globalized world. Explain and comment on the above. Hint: Below, I remind you the discussion in the classroom. The cost Hot Contagion Effect Segmented] - Integrated Interdependent, X euro > Camery risk regulatory regime regulatore arbitrage Global Market Example: Europe currency different - mutual recognition Benefits of of REG accross all En. Diversification * In highly interdependent markets Diversification does not work as expected, | systematic Risk Market Risk) | because of the Contagloy effect" As a result Diversification Volatility is increasing Total Sugar Riska One f the advantages of global/integrated markets (as opposed to segmented markets) is that a corporation's securities appeal to international portfolio investors, which facilitates international portfolio diversification. However, there are serious problems to potential diversification benefits when markets are highly interdependent in a globalized world. Explain and comment on the above. Hint: Below, I remind you the discussion in the classroom. The cost Hot Contagion Effect Segmented] - Integrated Interdependent, X euro > Camery risk regulatory regime regulatore arbitrage Global Market Example: Europe currency different - mutual recognition Benefits of of REG accross all En. Diversification * In highly interdependent markets Diversification does not work as expected, | systematic Risk Market Risk) | because of the Contagloy effect" As a result Diversification Volatility is increasing Total Sugar Riska